ERP Mistakes You Can’t Afford

As an Internal auditor, I have observed that many organizations jump headfast into implementation of ERP without having any plans or strategy for implementation of ERP. At its core it is important to understand that an ERP system integrates various functions across business into one complete system to streamline processes and information across organization. It sounds great in theory but to make it effective, it is important to lay the ground work first. Diving into implementation of ERP is like trying to swim without knowing how to float.

Before implementation of ERP, it is important to streamline your processes first. If your processes are already chaotic, implementing an ERP is not going to the processes right instead it is just going to amplify the existing chaotic processes. Streamlining your existing processes is an essential part. It is like cleaning up your workspace before starting a crucial project. You would not want clutter getting in the way of your productivity.

So how do I start to streamline the existing processes? It can be done by first mapping the existing process and identifying the key controls, work out the workflows and identify the bottlenecks or any redundancies. It is good to engage with team members to gather insights on pain points and areas for improvement. Aligning the processes with basic controls before implementing an ERP can save you headaches down the line. You’ll find that when everyone is on board and processes are well-defined, transitioning to an ERP becomes much smoother—and you can focus on reaping those long-term benefits instead of dealing with chaos.

The long-term benefits of aligning your processes with basic controls before implementing an ERP are substantial. Not only will this make the transition smoother, but it will also enhance user adoption rates and ensure that you’re getting the most out of your new system from day one. In short: take time to streamline now so that later on, when you’re reaping those sweet rewards from your shiny new ERP system, you’ll be glad you did!

When it comes to ERP implementation, the stories of failure often serve as cautionary tales for companies looking to take the plunge. Take Hershey’s, for example. They faced significant hurdles because of insufficient testing and user training. Imagine launching a new system only to find out that your employees don’t know how to use it properly—chaos ensues! Their integration challenges between systems left them scrambling during a crucial holiday season.

Then there’s Nike, which decided to rush their implementation without adequate testing. This led to overestimating system capabilities for demand forecasting, resulting in major inventory issues and lost sales. You can’t just throw technology at a problem and expect it to solve everything without proper groundwork.

Revlon’s story is no different; they struggled with poor change management. Without adequate risk assessment and contingency planning, they were left with an ERP system that didn’t quite fit their needs, causing further delays and frustration.

MillerCoors also found themselves in hot water due to a lack of stakeholder alignment and process clarity. When everyone isn’t on the same page from the get-go, you can bet that over-customization will rear its ugly head, leading to poor project governance that throws timelines—and budgets—out the window.

These stories highlight just how crucial preparation is in ERP implementation. Rushing into things or neglecting key components can lead straight down a path fraught with obstacles that many organizations simply aren’t prepared for.

Leave a Reply

Your email address will not be published. Required fields are marked *

© 2025 DASGUPTA SANTANU & Co. All Rights Reserved.

This is a staging enviroment